SEAMEC (NSE:SEAMECLTD) Q2 2027 Earnings Call

0:02 Ladies and gentlemen, good day, and welcome to Seamec Limited Q two FY twenty six Earnings Conference Call hosted by Alliance Capital Markets Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Bala Subramalian from Aryan Capital. Thank you, and over to you, sir. Thank you, sir, and questions. Good morning, everyone. On behalf of Arihad Capital, I welcome you to the earnings of Seamec Limited q two FY twenty seven conference call.

0:51 From the management side, today, we have mister Navin Gupta, holding director, mister Ashok Verma, CFO, and mister Sunil Gupta, head of strategy and investor relations. We welcome the management of Seamec on this call. Now I invite Mr. Navin Mukhtasar to give his opening remarks. Following, we will open the floor for Q and A. Over to you, sir. Thank you, Bara. Good afternoon, ladies and gentlemen. On behalf of Seamec, I extend a warm welcome to all our shareholders, investors, analysts and other participants joining us today for our Q2 and H1 FY twenty twenty earnings conference call. Thank you for taking the time to be with us and for your continued confidence in the Company.

1:38 The offshore energy sector continues to see a growing focus on domestic energy security and the development of offshore hydrocarbon resources. During the quarter, the Government of India approved a Samudur Muncan National Offshore Exploration Scheme with an outlet of INR84.84 crore through two thousand thirty to 'thirty one. The scheme is aimed at accelerating offshore exploration, supporting deepwater drilling and developing common infrastructure for bringing discoveries into production. We believe this initiative provides an important positive foundation for the development of India's offshore and relief sector over the coming years. We also saw increasing development in exploration activities during the quarter. ONGC announced a gas discovery in the Mananti offshore basin in September, following drilling under the Samu Namathan initiative.

2:29 This reinforces the potential of India's offshore business and the importance of developing capabilities required to explore and service these fields. ONDV has also outlined significant investment in deepwater and ultra deepwater exploration that will be carried out over the next five years, which could support activity across our wider offshore services value chain. For the offshore services industry, these developments are relevant because exploration and production activities require specialized vessels and technical capability at different stages of a previous life cycle. In addition to new exploration, inspection, maintenance and repair work on existing offshore infrastructure remains an important area of activity. Our focus is on positioning Seamec to participate in this opportunity, while maintaining the operational discipline and service standard expected by our customers.

3:19 During the quarter, we also continued to strengthen our fleet capabilities. I am pleased to share an important development in this regard. We signed a long term charter with Halakhshor for ONGP's inspection, maintenance and repair assignment by chartering for approximately twelve point five days with a contract value of approximately USD 55,000,000, excluding GST. The vessel commenced operations under the charter on October 21. This is an important addition to our fleet. The long term charter provides revenue visibility over the contracted period, while the deployment strengthens our ability to serve customers inspection, maintenance and repair activities.

4:08 As with our other assets, our priorities will be safe operations, reliable execution and effective utilization of the vessel. Our existing fleets continue to support operation across domestic and international markets. We remain focused on operational reliability, preventive maintenance, efficient vessel deployment and maintaining a high safety standard. We also continue to evaluate growth opportunities selectively with an emphasis on demand visibility, the quality of conduct and disciplined capital allocation. Looking ahead, we see opportunities arising from India's expanding offshore exploration program, investment in deepwater resources and the ongoing maintenance requirements of existing offshore infrastructure. At the same time, these projects have long development cycles and the timing of the individual opportunities will depend on exploration outcome, project approval and customer development schedules.

5:00 We will, therefore, continue to approach growth with a focus on execution, financial discipline and sustainable returns. With that, I would like to hand over the call to our CFO, Mr. S. Yogurman, who will take you through the company's financial performance for the quarter and half year. Ashok, over to you. Thank you. Thank you, Naveenji. Good morning or good afternoon, everyone, and warm welcome to our Q2 and H1 FY 'twenty seven earnings call. I'll take you through company's financial performance for the quarter and the first half of the financial year FY 'twenty seven. Starting with our stand alone performance. Revenue for Q2 FY 'twenty seven stood at INR 183.6 crores compared with INR 82.4 crores in Q2 FY 'twenty six, registering a growth of more than 90120% approx.

5:52 For the H1 FY 'twenty seven, revenue increased by 65% to INR $4.67 crores compared to INR 283.8 crores in the corresponding quarter last year. Stand alone EBITDA for the quarter two FY 'twenty seven was INR 31.2 crores compared with INR 0.2 crores in last year's same quarter. For H1 FY 'twenty seven, EBITDA grew by 57% to INR 148 crores as against INR 90 INR94.3 crores in H1 FY 'twenty six. Profit after tax for Q2 FY 'twenty seven was INR4.2 crores compared with a loss of INR25.8 crores in the same quarter last year. For H1 FY 'twenty seven, profit after tax increased by 59% to INR 85 crores compared with INR 54 crores in H1 FY 'twenty six.

6:42 Moving to our consolidated performance. Revenue for Q2 FY 'twenty seven increased by 103% to INR198.1 crores compared with INR97.4 crores in Q2 FY 'twenty six. For H1 FY 'twenty seven, our consolidated revenue grew by 61%, approx to $4.95 crores, other than 308.3 crores in the corresponding period last year. Consolidated OIBDA for Q2 FY 'twenty seven increased to 38.3 crores compared with 7.8 crores in Q2 FY 'twenty six. For H1 FY 'twenty seven, consolidated EBITDA increased by 55% to INR 162.2 crores compared with INR 104 crores in the same half year last year.

7:31 Consolidated profit after tax for Q2 FY 'twenty seven stood at INR50 crores compared with a loss of INR25.7 crores in H2 FY 'twenty six. For the first half of FY 'twenty seven, consolidated profit after tax increased to INR131.8 crores compared with INR50 crores in H1 FY 'twenty six. Our global financial performance reflects the benefit of continued efforts towards fleet expansion, securing the O and M contracts and improving vessel deployment. These initiatives have strengthened our revenue generating capabilities and contributed to overall financial performance. The addition of Seamec Anand and its deployment under a long term charter represent an important step in strengthening our fleet and enhancing contracted revenue visibility.

8:22 With that, I would now request the moderator to open the floor for the question and answer session. Thank you very much. Thank you very much. We will now begin the question and answer session.. Your first question from the line of mister Siddharth Jahan from three sixty one Capital. Please go ahead. Hi, sir. Thank you for the opportunity, and congratulations on good set of numbers. Couple of questions from my end. First of all, if I see offshore segment EBIT on a consolidated basis, it was an exceptionally strong quarter. So can you tell the reason for the same?

9:17 That as we have been guiding, two contracts of Seva Prabha, which were not there last year, have helped us in terms of the operating performance. Secondly, Agastya was also not there in Q2 FY 'twenty six, which has been added to fleet in FY 'twenty seven, Q2. So overall deployment of business has grown up, which has helped us improving the operating performance. Sir, but just to understand why the overseas segment, just to understand, shouldn't it be a part of domestic results? Is there any reason for this bifurcation? No. So if we we see overseas, then... Because Swordfish had operated less last year compared to this year.

10:05 Okay. Makes sense. Secondly, how do you see the global DSC market currently versus the current order book for the DP two type of DSCs? And, you know, do you have any idea on the expected deliveries over the next two, three years? So these vessels, diving support vessels are specialized kind of vessels, and they are not made for kind of battery line of portion kind of thing. So these are specialized units, and they are made specifically against some long term investment proposal. Currently, there are around 65 to 70 DSPs operating worldwide with having the inbuilt diving system. And there is just only one diving support vessel under production, which is reported as of now.

10:58 So typically, a diving support vessel take around two to three year in from the time of order is placed up until the delivery. So we can see that for next two to three years, there is nothing much which is going to be added to the fleet of the Singapore vessel, which is operating. But we may see some older tonnage moving out of the fleet. So there will be tightness in the market. And of this year, we have seen a surge in asset prices for ships and vessels. So what would be the current second price for DSCs if you go for acquisition and corresponding charter rate for DSC globally right now? See, the DSC, when you go for building, it will have different different kind of capabilities.

11:46 But if we start with a basic kind of DSE that will cost upward of 110,000,000 or $120,000,000 And depending upon the addition one we want to make, it may go move further to maybe around $150,000,000 also. And currently, the charter rates, again, it all depends upon charter to charter, how the charter is operating. So it may be a lump sum contract or maybe a direct contract, but it will vary differently. But if a new DSE is built and put it on charter, the indicative rate of vessels will be somewhere around 70,000 to 80,000 or maybe more depending upon the charter. Okay. And just lastly, touching upon your employee expenses, over the quarter, it has been steadily rising.

12:34 Any specific reason for it, or is it that the more cases we add, our employee costs will keep on rising? It is it is correlated with that only. Okay. So the crew which sits... Not the diary expert, but the general crew which sits on the ship, that cost... This is basically a part of the cost. Yes. Yes. It's it's a debt cost. Perfect, sir. Thank you so much, and all the best. Thank you. Thank you. We have next question from the line of mister from Choice International. Please go ahead. Yeah. Hi. Congratulations on a good set of numbers, I would say, given it's a well profit for the second quarter.

13:22 My question is regarding the Seamec Princess, given it has come out of the dry docking. Could we expect the EPC contract to come in for this provided Lampra and L and T have already been awarded the PRT projects respectively. If any color, that will be really helpful. And if I may, the second question is on the charter rate. If you could highlight, given for Seamec two, it's already $100,000 is what has been hired by ONGC. Do we continue to see the same number in for second week of October? Or is there any further appreciation or direction if you can provide any color on the same? Okay. See, on the SEAMECLTD, single currency, they have just come out of a tie down. And we are already in talks with L and T for the contract for the PRC10, which has been awarded to L and T. So we will be we are in advanced stage of finalizing the SEAMECLT. So once it is done, will be notified to stock exchange for the public for everyone to be aware about it. And that this we can expect maybe sometime during this coming week.

14:31 On Seamec two, we have already contracted with GR Infra and that motivation has also been sent to stock activities that charter rate is around $100,000 a day. And that work is for entire working season till May of 'twenty seven. Yes, that is helpful. Yes, we do understand the Seamec two has already been on hire. On the charter rates, we expect something similar for Seamec for instance in line with Seamec two? Yeah. It will be in line with the Seamec two only. Okay. That that is really helpful. Thank you. Thank you so much, sir. Thank you. Reminder to all the participants that you must star even to ask a question. Reminder to all the participants that you must star even to ask a question.

15:21 We have next question from the line of from Yes Securities. Please go ahead. Hello? Am I audible? Yeah. Yes. Can you remove the background noise here? Sir, there is just a background noise from your side. Sir, is it fine now? Yeah. Please go ahead. Yeah. Thank you so much for the opportunity. So, sir, firstly, my question was related to. So how much status is current h one f I about the... What is the device schedule and vessel extension over the next three years? H h one, we have done I this this... Yes, sir. H one, we have done $70,000,000 CapEx to acquire Seamecamand.

16:11 Mhmm. Okay? And we would look to expand our fleet depending on the size over next two to three years. Idea is that we should look at about 200 to $250,000,000 CapEx. Okay, sir. Giving specific guidance on CapEx for H two would not be easy, But idea is that over next two to two and a half years, we should do about $250,000,000 of CapEx. Okay, sir. So my next question is, which vessel sales special surveys are dried out in FY '7, 'twenty eight? Like, after what budgeted cost in this quarter?

16:58 In '27, 'twenty eight, we will be having the write off of, which will be coming, will be the four piece, which will have the write off. And rest all will be the titrating write off doing this year itself. Sir, what is the debt statement on interest cost? Like, how do we look at your debt profile and repayment? So, we for the acquisition of Anant, we took around INR $3.50 crores debt. So our debt profile, as of now, somewhere close to around INR $4.50 crores to INR $4.70 crores. And as Mr. Sunil has spoken that we are planning to invest probably twelve to eighteen months around INR 150 crores and then thereafter again.

17:55 So we are expecting to move ahead with the loan of fifty seventy... Sixtyforty or seventythirty ratio. So that would be added to the funeral loan. Okay, sir. Thank you for answering. But my next question would be, bulk carrier like RationPearl and accommodation bars are. Garland was just sold. Is there a deliberate exit or a bulk double down on GST, IMR strategy, or is the portfolio share deal driven? See, we remain focused on providing the creation of value for the stakeholders. So right now, we see focus on the offshore segment and that too particularly on the DSV.

18:40 So that's why we are keen on spending the fleet of DSV and we continue to look for our investment in the other type of vessels. So we got a good deal for Gallant, so that's why we sold it off. So there is no idea as of now to completely exit from that, but we continue to look for good opportunities. If some good opportunities come, definitely we will look for that. Okay, Thank you. Thank you for the opportunity. Yeah. Thank you. Thank you. We have next question from the line of from three sixty one Capital. Please go ahead. Sir, thanks for the opportunity again. Given the DHC market is so tight and your plans to add, I think, two to three vessels in the medium term, how difficult it is to solve for a secondhand vessel right now? Do you find any sellers out there?

19:34 Yeah. So as I told, the market is very tight, and that's why we are continuously evaluating the opportunity which are available in the market. So as and when some good opportunity comes, we will look for that. But if it is going to be accretive for us, then only we are really looking at it. But if it is going to be sometimes abnormal numbers are there, we are definitely not going to chase that opportunity. Understood. And let's say, if we don't find a secondhand DHC in the next six to twelve months, will you be exploring a new build order given the lead time is two to three years? Yes. That is also in the pipeline and one of the options for expanding the fleet. And are you confident that ONBC will be able to give you a better rate given the new build prices are very high right now?

20:25 See, price are determined with the market. It is not that one entity will be able to dictate the price. So if there are no DSPs available, definitely, the end client will have to look for increasing the charter rate to get the vessels. All right. So you are fairly confident that despite the rise in new build prices or even the secondhand prices in the market, you will be able to get a better rate than what you are getting currently? Correct. Correct. Okay. Thank you so much. Thank you. Reminder to all the participants that you press star one to ask a question. Have next question from the line of from Stages and Investment. Please go ahead.

21:13 Good morning and thank you for the opportunity. Sir, couple of questions. One is, what's the status of our European subsidiaries? Are we still planning to work on them? Are you shut it down? Or what is the expenses you're incurring on that each quarter? See, while we are conscious of looking at new business expansion, but gradually, the call is that we will try to liquidate some of that investment and bring back money to India over next twelve to fifteen months. And what is the expense that you're incurring, sir, each quarter roughly? So, there is no major expense today. There was some development cost on that asset that has been deployed, nothing operating cost as And the Prabha and SEAMECLTD contract that we have, where we are the vessels belong to OMGC, do they also go off hire in Monsoon?

22:17 And during the breakup, when there's a breakup occurring, who bears the cost for that, us or ONGC? So the Prabha and SEAMECLTD, which are owned by ONGC has been given to us on O and M contract. So they are continuing to work for all around the year, like our other DSPs, which are on are responded with ONGC. And during the breakdown, which is due to breakdown of machinery or something, of course, the cost has been borne by us during that period. But during that scheduled dry docking, we continue to get paid for the normal day rate. Okay. So the charges are paid during dry docking. Understood. And sir, the... I was just seeing, maybe this is an assumption that Sourfish, we've had...

23:05 Like, if if you see in the last quarter, we've had, like, twice or twice, you have a break... Breakdown. And this is, like, one of our newer newer assets. So how do you plan to ensure this doesn't happen going going forward? Because the other... I mean, I don't understand the the other tier is not... Has performed better compared to Princess. But what is the plan to ensure that we don't encounter this? Because it's a high rate for us in. See, Swordfish is having a different kind of work profile. It is engaged in the construction road in Saudi Aramco, and it is worth extensively with the cranes, all that I'm working. So the requirement is quite stringent over there. So even if there is some kind of minor breakdown is there, so Aramco do not allow the vessel to operate until and unless it has been verified and by a third party that, okay, defect defect has been activated properly.

23:59 So that's why you see a lot of announcement regarding the core fish. But vessel health is quite good and client and end client are otherwise happy with the performance of the vessel. So anything you can do, like can you take some steps to ensure that preventive measures can be taken? Are we taking one from our side to ensure that this doesn't happen or is that something that we So can we are taking all the necessary steps, so vessel and over a rigorous PMA schedule and that is also monitored even by the Saudi Aramco team and the client team also. So whatever best is possible, we are doing it. We are providing all kind of logistic support and spare. So it is unfortunate due to the extensive work that vessel is doing. So, Majinji are prone to for breed on work with such a prolonged user.

24:48 And in addition to what Naveenji said, see, this is a peril that this business will have. So we generally consider two to three days of off hire for every vessel, which generally takes care of such unscheduled breakdown. Okay. Understood. Yes. And the last question is, what is the are we giving any guidance for FY 'twenty eight, sir? We don't give a year to year guidance, but the idea is that over next four to five years, we should grow around 15% in revenue and around 18, 20% in bottom line. That is EBITDA or PAT? Pat. Okay sir. Thank you so much for answering the question. Thank you.

25:35 We have the next question from the line of from Fertile Investment. Please go ahead. Hi sir. Hello, Hari? Yes. Thank you so much for the opportunity, and congratulations on great set of numbers. Sir, my first question is that you have added several seats right now, and, you know, it has given us payment of increase in sales of operations. So could you provide some... Show some color on the current unexecuted order book or, you know, contracted revenue visibility for the next twelve to eighteen months? And also, how much of the future revenue growth will depend on fresh contract wins versus the existing contracts? See, as of now, all our contracts, all our vessels are on operation, except one which Naveenji mentioned earlier, which we are expecting to be happening over next one week to two weeks, okay? We have been telling people that out of the entire fleet, four vessels are working on a spot market contract, which operates season to season from middle or beginning of November till middle of May.

26:50 Rest contracts are working on long term charters. As of now, all the contracts are having a decent charter available. Next year end, two charters will change, which is and will complete their two year period. And all six will also come up for renewal next year. Okay. So another question is on Seamec, Anant. So while you have secured a long term charter with HL, which is over, I guess, twelve hundred and twenty five days. So could you elaborate on the expected return profile of this acquisition? Also, like, for the calculation, what should we consider as the payback period and the resident residual value of this after the completion of charter?

27:45 See, the payback period of this vessel would be roughly around five to six years. After three years of the existing contract getting over, we tend to build this vessel directly to ONGC. And for the remaining three years, we believe that we'll be able to derive the balance period of the cost, okay. The return profile is very good. A similar vessel available in open market would be nothing short of 80 to $90,000,000. We have acquired it at $70,000,000 right now. Okay. Great. And so last question from my end. So we have seen volatility in the quarter EBITDA margins, particularly from q one to q two.

28:36 So as the recently added vessels move towards a normalized operating cycle, what are the key factors that will determine the sustainable EBITDA margin profile for the coming few quarters? See, we generally say that don't look Seamec on a quarterly basis because this monsoon volatility will be there, while it will taper down over a period of time, but some amount of volatility will remain. We generally guide around 40% EBITDA margin on a stable rate for ninety to four years. Okay. Thank you. That answers my question. Thank you so much for the opportunity. Thank you. Your next question from the line of Charlie Shah from Family House. Please go ahead.

29:31 Good morning, sir. Am I audible? Yes. Yes. First of all, congratulations on a good set of numbers. So my first question is regarding, like due to the addition of new vessels to the fleet, depreciation expenses are increasing. So how would this, how would company manage the impact of higher depreciation on the profitability? See, some of the vessels, which are older now, their depreciation will go away in next two to three years. This is a heavy CapEx business. So for continuous growth, the CapEx has to be there and depreciation will go as we grow the business. Okay. And sir, second question would be like, how does management see the offshore vessels started, you know, evolving over the next two to three years or due to some external, you know, geo...

30:22 Geopolitical conflicts going on? Yes. I told earlier, we see a robust demand for TSVs during the next couple of years, and it will also be going upward accordingly. So we are quite sure of that. So let's hope that this continues. Okay. Thank you so much. You. You. Your next question from the line of investment from investment. Please go ahead. Yeah. Thank you for the opportunity again. So, just taking for the previous participant, so should we expect the depreciation to be same around what was there in the first quarter, second quarter? Can you just give us a rough estimate what the depletion looks like for the entire year?

31:20 Depreciation, actually, what happened, Seagal? As you know, we have added one vessel, vessel Seamec, Anant. So the depletion will go in the second half. So, we are expecting decision could be somewhere around 200 to INR $2.20 crores, something like that. That is for the full year? Yes, over next two years. Sorry, I can't hear you, sir. Two years, this year and next year between 200 to $2.50 crores is the expected at this year. Okay. And sir, Diamond, if I am not wrong, we are roughly at a rate of around 8 to 9,000 USD. So is that... And that has been more or less there for the last couple of years. Is there some chance of increasing up? Or...

32:09 And obviously, think it is the lowest among all of. Right? It's about 25,000 is what we are getting USD. So any chances of these two, the rates getting changed or will they remain as it is? So, Seamec is a diving support vessel and we already have a contract to HCL and HCL has got a contract with the ONGC. So that contract is going to run till 'twenty eight, at least 'twenty eight, 'twenty nine. So this will be coming for a reason at that point of time. And definitely, at that point of time, we are sure of getting some kind of upward revision in the charter rate. And same is for Seamec Diamond. That contract is getting over sometime in March next year, And we are looking at some kind of upward division in the day for the diamond as well.

32:59 But currently, isn't it very low, looking at the scenario, let's see if I look at it? So, Damod is not a diving support vessel. It is mainly an offshore supply vessel only. Correct. Correct. So, it is not on par with the other diving support vessel like Alastair, Nantor, Kozhikode. So, it is a much smaller vessel compared to a DSE. Okay. And Agastya, continue to get the optimum rate, which is in the market just now. And Agastya, are we, like, I know it's already chartered and it's already on contract, but isn't that rate a little bit on the lower side if if I look at it overall? Come again? Agastya, sir. Agastya, Agastya rate, I know that we've already chartered it, but isn't the rate on the lower side compared to what we are seeing in the market right now?

33:52 So the rate are again, the one by the value of the vessel. We have acquired this vessel. And on that basis, that rate asset has been worked out. And if you look at it, it has got a contract fee also come along with that. So that's why this rate has been worked out benchmarking it with the other parameters. Yes. So what I was trying to understand is not pulling down our profit. It's more or less in line with other profitability in terms of other asset. Is that a fair assumption? Yes. But also, we've been guiding our investors who have been there for the longer term. There is a strategy that we are trying to consolidate the business from our holding company to Seamec. And this is part of that strategy also.

34:39 So you see, over a period of last three years, most of the assets have already been consolidated. And now with the change in the contract, the contracts are also being taken up in Seamec. Okay, understood. Thank you so much for answering my question, sir. And all the best for the future, and I wish all of you a very happy, well, in advance, sir. Okay. Thank you, and same to you. Thank you. We have next question from the line of Priyanka, Vijid and Sengjin Westar. Please go ahead. Hello. Good morning. Anita? Yes. Sir, actually, I had a couple of questions. So does the company plan to acquire more vessels and, like, what type of vessels will it?

35:28 Definitely, as we answered previously, we would like to augment our fleet over next two to three years. And depending on old build vessel or north, we'll see whether to acquire 39 vessel or try to build a newer vessel. K. And, sir, apart from India and Middle East, which other international market is the company looking to enter? Right now, I think India and Southeast Asia, Middle East Asia would be a better market for consolidating. And over next two to three years, I think we'll concentrate over these over. Mhmm. Okay, sir. Thank you so much for your patience. Thank you. Reminder to all the participants that you press star and one to ask a question.

36:17 And next question is from the line of which is an investor. Please go ahead. Hi. I just wanted to understand what are the company's targets for improving ROC and ROE over the next five years, and also what is taking to reduce the environment impact of its vessel operations, particularly in fuel consumption and emission? See, ROC, ROE, we target to be on the range of 18 to 20% as this is a high CapEx business. And the more the better utilization we are able to achieve, the better performance comes, I think the targets can be achieved. Sure. No. Sounds...

37:02 Yeah. Sounds good. Sounds promising as well. On the environment, I mean, yes. So on the environmental front, our vessels are using the normal this low sulfur fuel only. And this is as per the statutory regulation. So earlier, like main fleet vessel, which used this high sulfur content or they are working on this kerosene oil kind of fuel, so which a lot of air pollution over that. So in our vessel, we are using this in grade of fuel. So they are very less pollution over for the air pollution. And shipping is a very highly regulated industry. So there is a regulator, which prescribes norm for each and every activity and Seamec continue to follow all those kind of norms.

37:55 And we have been reported very good on all those kind of parameters. Noted, sir. That that also sounds interesting. But the current war that's going on wouldn't have an impact on the fuel cost? So in most of our cases where a vessel is on charter on long term basis, the fuel cost is borne by the charterer. So in case of like Fortress or in case of Seamec Paladin or Seamec Alastia or Seamec Anand, it is a charter who is providing the fuel to us as a free supply. So that cost impact on those kind of vessel is nil. And on the lump sum job that we are taking, we are factored in some kind of price while doing the bidding for the job. So that is also taken care as of now.

38:42 Thank you. Thank you for the clarity. Thank you. Yes. Thank you. Thank you. As there are no further questions from the participants, I hand over call to the management for the closing comments. Thank you. Thank you very much for joining this call. And on behalf of management of Seamec's, I would like to thank all of the participants who have participated in the call, and wishing you all the very best and a happy prosperous device. Thank you. Thank you very much. Thank you. On behalf of Aryan Pepper Market Limited, that concludes this call. Thank you for joining us. You may disconnect. Thank you.